Editing Liberia (section)

=== Trends ===
Following a peak in growth in 1979, the Liberian economy began a steady decline due to economic mismanagement after the 1980 coup.<ref name=challenges>{{cite web|url=http://allafrica.com/stories/201106140356.html|title=The Challenges of Post-War Reconstruction{{snd}}the Liberian Experience|work=Government of Liberia|publisher=allAfrica.com|date=June 13, 2011|access-date=June 21, 2011|archive-date=October 19, 2014|archive-url=https://web.archive.org/web/20141019094038/http://allafrica.com/stories/201106140356.html|url-status=live}}</ref> This decline was accelerated by the outbreak of civil war in 1989; GDP was reduced by an estimated 90% between 1989 and 1995, one of the fastest declines in modern history.<ref name=challenges/> Upon the end of the war in 2003, GDP growth began to accelerate, reaching 9.4% in 2007.<ref name=imf>{{cite web|url=http://www.imf.org/external/pubs/ft/weo/2011/01/weodata/weorept.aspx?pr.x=41&pr.y=12&sy=2000&ey=2016&scsm=1&ssd=1&sort=country&ds=.&br=1&c=668&s=NGDP_RPCH%2CPCPIPCH&grp=0&a=|title=Report for Selected Countries and Subjects: Liberia|work=International Monetary Fund|date=June 20, 2011|access-date=June 21, 2011|archive-date=February 11, 2020|archive-url=https://web.archive.org/web/20200211213732/http://www.imf.org/external/pubs/ft/weo/2011/01/weodata/weorept.aspx?pr.x=41&pr.y=12&sy=2000&ey=2016&scsm=1&ssd=1&sort=country&ds=.&br=1&c=668&s=NGDP_RPCH%2CPCPIPCH&grp=0&a=|url-status=live}}</ref> In 2009, during the [[Great Recession]] GDP growth slowed to 4.6%,<ref name=imf/> though a strengthening agricultural sector led by rubber and timber exports increased growth to 5.1% in 2010 and an expected 7.3% in 2011, making the economy one of the 20 fastest-growing in the world.<ref name=consultation>{{cite web|url=http://www.imf.org/external/pubs/ft/scr/2010/cr10373.pdf|title=IMF Country Report No. 10/37|work=International Monetary Fund|year=2010|access-date=June 21, 2011|archive-date=June 14, 2021|archive-url=https://web.archive.org/web/20210614180151/https://www.imf.org/external/pubs/ft/scr/2010/cr10373.pdf|url-status=live}}</ref><ref name="agi">{{cite web|url=http://www.africagovernance.org/article/liberian-president-government-and-people-are-partners-progress|title=Liberian President: Government and People are Partners in Progress|date=January 27, 2011|work=Africa Governance Initiative|url-status=dead|archive-url=https://web.archive.org/web/20161220103119/http://www.africagovernance.org/article/liberian-president-government-and-people-are-partners-progress|archive-date=December 20, 2016}}</ref>

Current impediments to growth include a small [[domestic market]], lack of adequate infrastructure, high transportation costs, poor trade links with neighboring countries, and the high [[dollarization]] of the economy.<ref name=consultation/> Liberia used the [[United States dollar]] as its currency from 1943 until 1982 and continues to use the U.S. dollar alongside the [[Liberian dollar]].<ref>{{cite web|url=https://docs.google.com/viewer?a=v&q=cache:rjgZxrEkytAJ:www.countrycompass.com/_docs/assessments/Liberia_Economic_Recovery_Assessment.pdf+Liberian+dollar+1982&gl=us&pid=bl&srcid=ADGEESgB5jM-McEY_lEOfi7dtjUAbUY3FHNMS-1b7c1mewxokLnC7PucnxlcZgbC4H60-44s9Kyw4SlVD0s8pI0lznK8MH_FSOPkOAEW8OgbhuDeI2kiEZ81wf4E0kNLQHndpFSE3jFO|title=Liberia Economic Recovery Assessment|work=USAID|date=July 2008|access-date=October 28, 2018|archive-date=April 12, 2019|archive-url=https://web.archive.org/web/20190412091814/https://docs.google.com/viewer?a=v&q=cache:rjgZxrEkytAJ:www.countrycompass.com/_docs/assessments/Liberia_Economic_Recovery_Assessment.pdf+Liberian+dollar+1982&gl=us&pid=bl&srcid=ADGEESgB5jM-McEY_lEOfi7dtjUAbUY3FHNMS-1b7c1mewxokLnC7PucnxlcZgbC4H60-44s9Kyw4SlVD0s8pI0lznK8MH_FSOPkOAEW8OgbhuDeI2kiEZ81wf4E0kNLQHndpFSE3jFO|url-status=live}}</ref>

Following a decrease in [[inflation]] beginning in 2003, inflation spiked in 2008 as a result of worldwide [[2007–2008 world food price crisis|food]] and [[2000s energy crisis|energy crises]],<ref>{{cite web|url=http://mof.gov.lr/doc/Published%20Fiscal%20Outturns.pdf|archive-url=https://web.archive.org/web/20120325223907/http://mof.gov.lr/doc/Published%20Fiscal%20Outturns.pdf|url-status=dead|archive-date=March 25, 2012|title=Quarter Three Fiscal Outturn, Fiscal Year 2010/11|work=Ministry of Finance|date=May 2011}}</ref> reaching 17.5% before declining to 7.4% in 2009.<ref name=imf/> Liberia's [[external debt]] was estimated in 2006 at approximately $4.5 billion, 800% of GDP.<ref name=challenges/> As a result of bilateral, multilateral and commercial debt relief from 2007 to 2010, the country's external debt fell to $222.9 million by 2011.<ref>{{cite web|url=http://mof.gov.lr/doc/2nd%20Qrt%20Debt%20Management%20Report.pdf|title=Second Quarter 2010/2011 Public Debt Management Report|work=Debt Management Unit|publisher=Ministry of Finance|date=March 25, 2011|url-status=dead|archive-url=https://web.archive.org/web/20130910014431/http://mof.gov.lr/doc/2nd%20Qrt%20Debt%20Management%20Report.pdf|archive-date=September 10, 2013}}</ref>

While official commodity exports declined during the 1990s as many investors fled the civil war, Liberia's wartime economy featured the exploitation of the region's diamond wealth.<ref>{{cite news|url=http://news.bbc.co.uk/2/hi/africa/839206.stm|title=Liberia's diamond links|newspaper=BBC News|date=July 18, 2000|access-date=June 21, 2011|archive-date=September 28, 2018|archive-url=https://web.archive.org/web/20180928044310/http://news.bbc.co.uk/2/hi/africa/839206.stm|url-status=live}}</ref> The country acted as a major trader in Sierra Leonian [[blood diamond]]s, exporting over US$300 million (~${{Format price|{{Inflation|index=US-GDP|value=300000000|start_year=1999}}}} in {{Inflation/year|US-GDP}}) in diamonds in 1999.<ref>{{cite news|url=http://www.cbc.ca/news/background/liberia/ |title=CBC News Indepth: Liberia |newspaper=CBC News |date=March 29, 2006 |url-status=dead |archive-url=https://web.archive.org/web/20130908174543/http://www.cbc.ca/news/background/liberia/ |archive-date=September 8, 2013 }}</ref> This led to a [[United Nations]] ban on Liberian diamond exports in 2001, which was lifted in 2007 following Liberia's accession to the [[Kimberley Process Certification Scheme]].<ref>{{cite news|url=https://www.usatoday.com/news/world/2007-05-01-liberia_N.htm|title=Liberia restarts diamond industry|newspaper=USA Today|date=May 1, 2007|access-date=September 3, 2017|archive-date=March 9, 2020|archive-url=https://web.archive.org/web/20200309052935/https://usatoday30.usatoday.com/news/world/2007-05-01-liberia_N.htm|url-status=live}}</ref>

In 2003, additional UN sanctions were placed on Liberian timber exports, which had risen from US$5 million in 1997 to over US$100 million in 2002 and were believed to be funding rebels in Sierra Leone.<ref>{{cite web|url=http://www.greenpeace.org/international/en/news/features/bloody-timber-off-the-market/|title=Bloody timber off the market|work=Greenpeace|date=May 7, 2003|access-date=June 21, 2011|archive-date=July 16, 2017|archive-url=https://web.archive.org/web/20170716103213/http://www.greenpeace.org/international/en/news/features/bloody-timber-off-the-market/|url-status=live}}</ref><ref>{{cite web|first=Gary|last=Strieker|url=https://edition.cnn.com/2002/TECH/science/01/13/liberian.timber/index.html|title=U.N. mulls embargo on Liberian timber|work=CNN|date=January 13, 2002|access-date=June 21, 2011|archive-date=June 14, 2021|archive-url=https://web.archive.org/web/20210614180148/http://edition.cnn.com/2002/TECH/science/01/13/liberian.timber/index.html|url-status=live}}</ref> These sanctions were lifted in 2006.<ref>{{cite web|first=Chenni|last=Xu|url=https://www.voanews.com/a/a-13-2006-06-20-voa64/325269.html|title=UN Lifts Liberia Timber Sanctions|work=Voice of America|date=June 20, 2006|access-date=June 21, 2011|archive-url=https://web.archive.org/web/20120130090304/http://www.voanews.com/english/news/a-13-2006-06-20-voa64.html|archive-date=January 30, 2012|url-status=live}}</ref> Due in large part to foreign aid and investment inflow following the end of the war, Liberia maintains a large [[Current account (balance of payments)|account deficit]], which peaked at nearly 60% in 2008.<ref name=consultation/> Liberia gained observer status with the [[World Trade Organization]] in 2010 and became an official member in 2016.<ref>{{cite web|title=Members and Observers|url=https://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm|access-date=October 15, 2020|website=wto.org|archive-date=June 29, 2011|archive-url=https://web.archive.org/web/20110629193816/http://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm|url-status=live}}</ref>

Liberia has the highest ratio of foreign direct investment to GDP in the world, with US$16 billion (~${{Format price|{{Inflation|index=US-GDP|value=16000000000|start_year=2006}}}} in {{Inflation/year|US-GDP}}) in investment since 2006.<ref name=agi/> Following Sirleaf's inauguration in 2006, Liberia signed several multi-billion-dollar concession agreements in the [[iron ore]] and [[palm oil]] industries with numerous [[multinational corporation]]s, including [[ArcelorMittal]], [[BHP]] and [[Sime Darby]].<ref>{{cite web|url=http://allafrica.com/stories/201008271043.html|title=Government Announces Agreement with Chevron to Explore Liberian Waters|publisher=allAfrica.com|date=August 27, 2010|access-date=June 21, 2011|archive-date=October 20, 2012|archive-url=https://web.archive.org/web/20121020040345/http://allafrica.com/stories/201008271043.html|url-status=live}}</ref> Palm oil companies like Sime Darby (Malaysia) and Golden Veroleum (USA) have been accused of destroying livelihoods and displacing local communities, enabled by government concessions.<ref>{{cite web|url=http://www.globalpost.com/dispatches/globalpost-blogs/rights/palm-oil-companys-deal-liberia-sparks-controversy|title=Palm oil industry accused of land grabs in Liberia|work=GlobalPost |publisher=globalpost.com|date=December 27, 2012|access-date=January 8, 2013|archive-date=July 2, 2016|archive-url=https://web.archive.org/web/20160702085839/http://www.globalpost.com/dispatches/globalpost-blogs/rights/palm-oil-companys-deal-liberia-sparks-controversy|url-status=live}}</ref> Since 1926 [[Firestone Tire & Rubber Company|Firestone]] has operated the world's largest [[rubber plantation]] in [[Harbel]], Margibi County. As of 2015, it had more than 8,000 mostly Liberian employees, making it the country's largest private employer.<ref>{{citation |first=Fred |last=van der Kraaij |title=Liberia: From the love of liberty to paradise lost |page=144 |publisher=Leiden, African Studies Centre |date=2015 |url=https://openaccess.leidenuniv.nl/handle/1887/33835 |archive-url=https://web.archive.org/web/20200803074535/https://openaccess.leidenuniv.nl/handle/1887/33835 |archive-date=August 3, 2020 |isbn=978-90-54481447}}</ref><ref>{{cite web|url=http://www.firestonenaturalrubber.com/company_history.htm|title=Firestone and Liberia – Company History|work=Firestone Natural Rubber Company|url-status=dead|archive-url=https://web.archive.org/web/20110612171553/http://www.firestonenaturalrubber.com/company_history.htm|archive-date=June 12, 2011}}</ref>

In September 2024 the International Monetary Fund (IMF) announced that its executive board approved a financial arrangement of approximately $210 million for Liberia. The approval includes an immediate disbursement of around $8 million. This arrangement is aimed at supporting Liberia's economic recovery and addressing fiscal challenges.<ref>{{cite web |url=https://www.reuters.com/world/africa/imf-says-its-board-approved-210-million-arrangement-liberia-2024-09-25/ |title=IMF says its board approved $210 million arrangement for Liberia |work=Reuters |date=September 25, 2024 |access-date=October 2, 2024}}</ref>